Personal marketing is the key to life without discounts
06.04.2016 7412

Personal marketing is the key to life without discounts

Price wars have become part of everyday life in retail. Often, the decision on the amount of discounts is made without analyzing the situation on the market and financial opportunities of the business. As a result, marginality falls and the business is on the verge of survival. Personalized marketing involves the targeted use of discounts in combination with other tools to increase sales. At the same time, everyone remains the winner: both business and the buyer.

“Life without discounts” begins with a personal acquaintance with the client, his features, preferences and antipathies, ”said Ivan Borovikov, CEO of Mindbox. A person makes his choice between several options based on two factors: the price of the goods and the impression of the service. If you decide that playing with the price is the last thing, then you need to bet on the quality and personalization of the service.

Personalizing marketing is not so difficult. At the first stage, only one customer contact (phone or e-mail address) and technology that will allow you to see not a “stream of unknown checks”, but a specific person with his purchases are enough. For this, the basic mechanics of loyalty programs are needed when customers receive a discount or points in exchange for using a bonus card.

If we are talking about an online store, it is useful to explain to the buyer the benefit of the fact that he will leave his contacts. You get a chance to “recognize” it automatically at each next visit, since modern technologies allow it.

Ivan Borovikov offers the following scenario for building trust with a client.

At the first purchase, the store customer receives a funded card in exchange for a phone number. At each subsequent visit to the store, he simply presents a card or calls a phone number and received a discount of 5%, while accumulating points for purchases. If the client "disappeared", using SMS the store reminds him of himself.

When the balance of points accumulated on the card becomes sufficient to receive a pleasant discount or free product, the store offers the participant to spend points, having previously answered a couple of questions in the questionnaire on the website or through the call center. You cannot spend points without filling out the questionnaire. So you can get all the necessary information about the client (city, age, gender, date of birth, etc.). Open and optional questions in the questionnaire should be avoided: the data are heterogeneous and difficult to use. If you have no idea how tomorrow you will use the answer to the question “What are your plans for the weekend” - exclude it from the questionnaire. Be sure to explain to the buyer why it is beneficial to fill out a questionnaire and promise not to spam - this will serve as a decisive argument.

The database of purchases allows you to see the volumes and reasons for the outflow of customers, predict the date, time and composition of the next purchase, create personal offers. If you build up such communication correctly, everyone will be happy: the buyer will have a personal attitude to himself, and the company will save on media advertising and increase revenue.

Ivan Borovikov does not claim that he will be able to completely refuse discounts, but it will become possible to use this tool more efficiently. Experiments show: in order to push the customer to purchase, often a small discount is enough. You can see for yourself.

Select three groups of customers, send them a direct offer (e-mail or SMS) with different sizes of discounts (for example, in 7, 10 and 15%), and compare the response. It is likely that the difference in response between customers who received an 7% discount and a group that received an 15% offer will be small. Applying a discount in 7% for all customers, you will receive as many new orders as with 15%, but you will not kill the margin.

Price wars have become a part of everyday life in retail. Often, the decision on the amount of discounts is made without analyzing the market situation and financial possibilities ...
Please rate the article

Materials on the topic

WhatsApp and Telegram: Business Opportunities

Messengers are one of the key channels of business communication with customers and an integral part of the marketing mix, which works effectively at all stages of the marketing funnel. Also, messengers allow you to comprehensively solve various tasks of brands - ...
14.12.2021 4422

Truth and myths about TikTok. The five most common misconceptions about this unique social network

TikTok has become a striking phenomenon both among B2C users and among business representatives who seek to sell their product to this very audience. And, of course, it instantly became overgrown with myths and speculation! The purpose of this article is to separate the truth from ...
06.07.2021 5703

User generated content as a way to promote and increase sales

The topic of filling a commercial profile, it would seem, has already been studied far and wide. At the same time, there are a lot of faceless, similar and boring accounts in the online space. Accidentally getting on such pages, you quickly flip through them, and if suddenly and ...
12.05.2021 4710

How is changing the content of the fashion brand in social networks

In this article, we will not talk about obvious things: a turn on online sales, cost reduction, support for staff and ourselves. A lot has already been written about this, and every second article continues to be published. Expert SR Elena Vinogradova ...
19.06.2020 11168

Rich color, flora, eco style and abstraction. Four main trends in this year's window dressing

The summer season 2020 in the design of shop-windows of fashion stores will be held under the sign of brightness, abstract and floral motifs. Laconicism, environmental friendliness, a conscious attitude to nature, its biodiversity and the resources of the planet, as before, remain in the trend ...
09.06.2020 10908
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning